Today, the introduction and financing of an occupational pension scheme is a decision taken by the employer, at company level or via an industry collective labour agreement.
At its meeting on 20 July 2018, the Council of Ministers passed a draft bill governing the creation of a Private Supplementary Pension for Employees (“PSPE”).
The draft bill provides that employees themselves can decide to contribute to a PSPE, limited to 3% of a reference wage based on their salary, reduced by the contributions, if any, for the same period made to an existing occupational pension plan provided by the industry or employer. The 3% may be adapted over time by Royal Decree.
Within this 3% limit, the employee determines the amount of the contribution. This amount is deducted by the employer from the employee’s net salary, so the employer must liaise directly with the pension institution.
Both the pension institution and pension plan are chosen by the employee at his discretion.
The government plans to provide supplementary pensions to all employees. In practice, however, we are not certain whether employees will use this new system.
The draft bill has now been submitted to the Council of State for its opinion.